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How to Budget for Travel – A Complete Guide

There are many different ways to save for and afford travel. I’ve considered (and tried) many of them; from working a multiple part time jobs to selling all my belongings and everything in between. There’s no denying some methods work better than others and different things work for different people. To cater for this I’ve written a comprehensive guide on how to budget for travel.

How Much Do You Need to Save?

The first step is an obvious one, regardless it should not to be taken any less seriously. It’s important to come up with a figure of how much money you would need to make your trip a possibility, and then, most importantly, work out if it’s possible at all!

Consider all of the factors below to help you calculate how much you need to save for your holiday.

Where can you go based on your budget?

As a general rule, proximity will be the biggest determining factor. If you’re based in Australia, the most budget friendly option outside of your home country will be somewhere in nearby Asia (Indonesia, Thailand, Vietnam, Laos or Cambodia are all great options) or the Pacific (Fiji is extremely affordable and close). If you’re located in the USA, a trip to nearby Canada or Mexico is an obvious but excellent option, but you could also consider locations like Hawaii – still within the USA but it feels a world away with the slow-paced island lifestyle – or head south to the Bahamas, Belize, or elsewhere in the Caribbean – the options are endless!

How long can you go for?

I’m going to say something that might sound ridiculous at first, but stick with me here. Going away for a shorter amount of time does not necessarily mean it will be cheaper. Quite often you can spend the same amount on a 2-month holiday as you would on a 2-week holiday. Some readers might think I’m crazy or at the very least terrible at math, but I promise you this has been tried and tested! The main reason for this is that for a longer trip you plan further in advance and in more detail, so you’re bound to find more ways to save cash; you’ll also spend less on a longer trip as you’ll be in long-term travel spending mode, whereas on a 2-week holiday you’re likely to overspend and indulge as you know you only have two weeks to go overboard; finally, if you stay longer in each place and dial back your accommodation a notch, you’ll save a tonne of cash. Long term rentals, where you pay a weekly or monthly rent instead of a per night hotel rate, are also a great option to save money.

What type of trip do you want to take?

Lastly, think about what you want to do overseas. Lying around all day at a beach resort might be your cup of tea, but you’ll also spend a fortune on food and beverages at a nice resort, despite the fact that you’re not doing much. In contrast, being outdoors on day trips and activities will also be expensive, but you’ll be experiencing so much more than you would otherwise do at home. The choice is up to you! Determine the type of trip you’re looking for and use this to help set your daily budget.

Calculate Your Savings Goal

Flights + Accommodation + Travel Insurance + Daily Spendings = $_____

Once you’ve determined how much money you’ll need, you’ll then be able to come up with a dollar figure for your savings goal.

For safe measure, always round the amount up; it’s better to have too much money and come home with extra than fall short!

Example: My one-week holiday to Bali

Flights: $1,000 (return)

Accommodation: $150 per night = $900

Travel Insurance: N/A (yearly coverage)

Daily Spendings: $50 per day average

Total = $2250

The above is a very comfortable trip that could easily be cut in half! Be sure to look out for flight sales, hotel deals and other ways to cut your expenses.

How Are You Going to Reach Your Goal?

There are many great ways to save money. Just like exercise or trying a new diet, the best way to get there is to head in the right direction and take it slow and steady – not to completely stop living life while you try and save every single penny! So long as you’re putting money away each week, you’re heading in the right direction. Below are some of the most common ways to reach your travel savings goals:

Work + Save (slow and steady)

The most common way to save for a trip is to set a goal, figure out how much you can save per week, add together how many weeks it will take to reach your target, and book your trip for that time. This provides a great incentive to work hard, take on extra shifts or even an extra job, and save more money in a shorter space of time… so you can go travelling sooner!

Taking out a loan

Some people don’t want to wait it out and choose instead to take out a personal loan to fund their travels, vowing to pay it back as quickly as possible upon return. There’s no shame in needing to take out a personal loan in order to leave sooner or go for longer, however you should always have a game plan for how you’ll pay it back so you don’t get stuck with the post-travel blues for longer!

Work while you travel

Another great way to fund your travels which has really picked up momentum over the past few years is the work + travel lifestyle. There are many great jobs for people who love to travel… such as blogging!

Get to it!

No matter which way you choose to go about saving for your travels, it’s encouraging to know that as with anything in life, if you want it bad enough you can make it happen, one way or another! Remember there are so many ways to save money generally (like these!), not just for travel, and the key thing to note is that it often comes down to sacrifice. Giving up a bad habit, reigning in your spending to stop trying to “keep up with the joneses” or making substitutions are all great ways to save more money in less time.

Adios and safe travels!

$250 Giveaway!

Comment below with your dream destination and why.

The winning entrant will receive a $250 prepaid VISA gift card to help you start saving for your next adventure!

The latest:

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My dream destination? Any place with winter season. I’ve always wanted to see how people react on such weather. I also wanted to make sure winter do exist. ‘Cause here in the Philippines, it’s always summer days (wet and dry).

I would like to go to Cuba, actually that’s my child’s dream… Why would I want to go? Well, I’m a dancer. I wanna go see but mostly FEEL La Habana and experience the real life of Cuba… I definitelly want to see how comunism works and looks like, but most of all, I would like to take the part of that magnificant cuban perspection home with me… Your giveaway is probably over, but nevertheless I wanted to share my passion with you… xoxoo Love from Croatia 🙂

I would love to go to Canada, particularly during winter. I would love to have a “white Christmas” and have the chance to see the Northern Lights. Antarctica is also on my bucket list. Just started travelling over the last few years and have found Groupon, Travelzoo etc to be a great way to travel. I’ve been to Sth Africa and Vietnam on vouchers and have been able to extend the trips and stay for longer. I’m now saving for a three month trip to the UK.

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3 years ago

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Catherine

Sorry it did not allow me to put in the separate paragraphs of the poem on here 🙂

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3 years ago

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Catherine

Hi Brooke, I have written a poem about my plan and dream to travel to Iceland. Thank you, Catherine Iceland I would very much like to tell you firsthand, About my dream to visit Iceland. This country seems so romantic and grand, And I know this desire you will well understand. In photos green hills stretch for mile after mile, A view of the sea is just as worthwhile. The houses are colourful and unique in style, Oh so different from the Apple Isle. Summer or winter I do not mind, As long as the weather is not too unkind. In Reykjavik beauty I would find, As my Lonely Planet… Read more »

I’m about to leave on a 15 month trip and have spent two years saving for it. I tried to change my spending to save for travel but in ways that still wouldn’t sacrifice the time and life I spent here in Melbourne. Hence I’d still go out with friends; but we would go to cheap Asian restaurants that are BYO; so I’d be spending $15 on a night out rather than $100 (I also always got the train home instead of getting a taxi). I also did things like move slightly further out of the city to half my… Read more »

The saving process to get to South America has begun. There are so many countries with different appeal, but one thing that is common is the culture, I desperately can’t wait to get there and experience everything I can! Specifically I am aiming for Venezuela to reunite with a friend I met on my London gap year and meet her family which she told me so much about. Argentina would also be well received because my hips don’t lie – I REALLY need to learn how to dance in rhythm. Plus a sneaky trip north to Mexico for some taco’s… Read more »

Aside from wanting to travel everywhere in the world eventually my dream destination is Bolivia, South America! Myself and my boyfriend have been working away in the Queensland outback for months trying to save to make it over there, can’t wait till we finally make it! Great post about saving, potentially one of the hardest things to do I reckon!

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3 years ago

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Emily Wilson

My dream holiday would definitely be Morocco! My mum is from Morocco, but unfortunately my family has never been as my mum left there early as a child. After seeing your posts on Morocco it made me determined to learn more about my background and it looks so amazing! I would love to be considered for this competition! xx

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3 years ago

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Aurelie

Hello there,

I recently came upon your blog looking for solo trip ideas, and I must say you have a very helpful site.
Next year I will be turning thirty and I wanted to get an idea on where to go and what to do. I am willing to do a little bit of splurging but not too much as I still want to be able to come back with some type of money LOL. Anyway Keep up the great work!

I really wish I could enter this giveaway but alas I’m from the UK!! Sad times! It would definitely come in handy. I love the idea of travelling and have only had a small dose of it so far but I fear I’ve got the bug. Definitely on the cards to do a lot more travelling in the near future and these tips are more than useful so thank you! Saving is my number one goal atm, I’m in a full time job so that is easily done for me right now, but I also like the idea of working… Read more »

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3 years ago

Guest

Carlia

Hey!
The destination I have my sights set on is Havana, Cuba. The culture there is just so vivacious and bright and all I want is to see it and be a part of it before the destination is taken over and urned into a commercialised tourism destination. The music and dance culture is incredibly intense and raw and it would be amazing to be able to experience this and lay down some roots.

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3 years ago

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Renee

Brilliant article as always. When I was younger and started 1st travelling I was on quite a low wage but still had the travel bug. I stayed in some pretty basic accommodation, my theory was you were hardly in the rooms and they money went towards day tours, shopping and seeing more of the places I was in. One was a Bangkok backpackers with no AC, bit of a struggle with the temperatures they have but so worth it! Some places I went to I made sure they had cooking facilities, as tempting as it is to eat out for… Read more »

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3 years ago

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Cassie Lewis

Hi Brooke! My best friend lives interstate and the only time we get to see each other is when we go on holiday! We met in 2012 on a trip to Japan where we were room mates for 3 nights. Never have I clicked so well with a person. Since then I have been to visit her twice in the Gold Coast and she has been to Adelaide twice as well. We also went to Hawaii together at the start of this year which was an incredible experience which has only made us more eager to explore other parts of… Read more »

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3 years ago

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Hannah

My dream destination is Costa Rica!

I would love to visit there so I could bask in the sunlight on the beach, take up surfing, become one with the fish while mastering scuba-diving, trying new foods, ziplining alongside the monkeys in the rainforest…and when I’ve done all that – be like a sloth and spend afternoons simply relaxing. Ahhh.

My dream destination is South America. With life sort of spinning, churning and spitting me out of a year of chaos (but laced with blessings and lessons) – I think there is no greater playground for growth, self discovery and fun quite like the South American landscape. Hiking in Peru, partying in Brazil, reconnecting with nature in the Amazon … If I was fortunate enough to win, I would consider it to be a universal sign that’s sort of nudging me and whispering ‘go gem ’em darling’. xx

GREAT POST! Having just come back from a 4 month trip, im desperately searching for a new job to help me save again for my next adventure, which sadly wont come til maybe next summer. I went over board in Mostar/Sarajevo’s shopping centers, buying ALOT of clothing!! Im so used to the Bosnian Mark, that Aussie money seems so foreign to me now. Even when i convert from euro i always convert to the mark instead of trying to figure out how much is it in $$. haha

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3 years ago

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Emma Hayman

I know it’s already been said, but definitely Peru, to see Machu Picchu and hike the Inca trail- from the photos (and vlogs) that I have seen, the ancient beauty of the site is wondrous. I’ve always loved history, and thus a trip there is definitely on the bucket list. 🙂

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3 years ago

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Melanie

Hey Brooke,
Thanks for the saving tips! I’ve really been enjoying watching your adventures as of late, thanks for the inspiration and advice! =)
My current dream destination is Tanzania, mainly because I would love to hike up Mt Kilimanjaro but I also want to experience what life in Africa is like. I am hoping to travel elsewhere in Africa next year to volunteer with a couple of NGO’s, but would love the trip to include some serious exploring of this completely different part of the world!

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3 years ago

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Laura

Hey Brooke! A great read. My dream destination is Antarctica. I’d love to experience a landscape unlike anything I’ve seen before, and glimpse incredible wildlife in such a pristine, breath-taking environment.

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3 years ago

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Hayley

Hi Brooke! My dream destination would be Thailand! Earlier this year, I had the privilege to go on a mission trip to Northern Thailand it was a blast! We got to teach English at schools and visit children’s home’s on the Thai-Burma boarder. One of the places we visited was called Child Life and it is an organisation run by a man named Abraham who rescues children begging on the boarder and gives them food and a safe home to live. This place touched my heart and it was such an incredible experience to see these children and be able… Read more »

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3 years ago

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Lauren

My dream destination is Vienna! The city seems so beautiful! I love the architecture, and the beauty of the mix of buildings and nature. I would especially love to go their during the winter when it snows, and everything is decorated for christmas!

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3 years ago

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Danielle

Hello Brooke! I’ve been very fortunate to have travelled quite a lot in my 27 years (nothing on your scale though!). And like you, much of this travelling has been solo. Whilst I’ve managed to have an incredible time on these journeys and highly recommend it, I’ve learnt that everything truly is best shared. My dream destination would be anywhere I can explore this amazing world we live in with my family. My family I must say includes my beautiful dogs who love to explore just as much as me! My dream destination would be to take my two girls,… Read more »

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3 years ago

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Evan

Pyramids in Egypt. I love seeing and visiting amazing sights around the world, I have done a lot of the sights in the USA and Niagara Falls, I have a trip planned to Europe next year to see a lot of the sights around there so that will be done as well. But, sadly the Pyramids in Egypt is one place I don’t think I’ll be travelling too, at least not until the world settles down a bit! Reckon I have missed my opportunity to see those amazing feats of mankind! So that is my dream destination, but for that… Read more »

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3 years ago

Guest

Monique

Hey Brooke! Apologies in advanced for the upcoming essay 😛 Firstly I just wanted to say thank you for this opportunity and the constant wanderlust this blog has inspired in me! My ULTIMATE, out-of-this-world (quite literally) dream destination- I kid you not- is to travel into SPACE! I am the 20 year old who still entertains dreams of being an astronaut when she grows up (who wants to grow up anyway?). I don’t even have to make it to the moon (nobody cares if you’re the second one to do it), but just to see the earth from the spaceship… Read more »

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3 years ago

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Rasima

Hi Brook. Today is my daughter 21st birthday, she is going to America in January 2016 for holiday, for only 20 days. She loves to travel…she’s at uni and working too, that’s how she’s saving the money…I wish that I can help my daughter but I’m not working because I have back problem, I hope a positive response….sorry for my English

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3 years ago

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Cassie Ellis

Hi Brooke!

Currently my dream destination is Uluru in Australia. I have spent my whole life on the east coast of Australia and I have recently become fascinated with the idea of travelling across country and being able to watch the sun rise over Uluru, I am working 7 days a week as I have a number of other little trips planned for the coming year, but Uluru is my number 1 destination. I feel like it would be a truly spiritual experience.

Hey Brooke, My dream destination would have to be Iceland! I love exploring and nature, adventuring off the beaten path and discovering hidden gems! I would love to hire a campervan so I could roam around finding the places I love with a bit of freedom! From seeing the northern lights, wale watching, volcano and glacier hunting, exploring icecaves, swimming in wafterfalls to driving through some of the most picturesque scenery in the world, there are no questions as to why this place is on my bucketlist! I also love showing people and opening their eyes to countries they never… Read more »

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3 years ago

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Sophie

Scotland is the country that is on my mind all the time! My family are from there and I would love to take my mother there for the first time so we can see them and explore the area in which my grandparents lived. I wouldn’t just stick to the capital cities, there just seems like there is so much else to explore too. The nature, rolling green hills, the architecture, the highlands…. Hopefully I would be able to spot nessie the lochness monster, hear some bagpipes and try some haggis if we are game enough! Who wouldn’t dream of… Read more »

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3 years ago

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Jennifer

Hi Brooke. Loving all the travel inspiration I get from your blog. My dream destination has always been Israel…would love to walk in the land that was the birthplace of the world’s three most popular monotheistic religions. So much history to absorb! Friends and family in Australia think I’m crazy for wanting to visit such a volatile place but I know I will get there one day.

Secondly, my dream destination is Nepal. I have always been intrigued by Nepal as we don’t always hear too much about it in the news, and then recently they had such a horrible natural disaster and suddenly everyone was talking about Nepal! I would love to travel to Nepal and maybe teach English there for a while. I feel like it’s a country that so many people overlook when they are planning their travels and I would love to go and see what it’s all about!

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3 years ago

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Jessica

My dream destination. My dream destination is ever changing. It changes with every beautiful photo of a foreign land. It alters from reading articles detailing amazing adventures. But lately my imagination runs wild with the films I watch. Can you guess it ? I see myself ( and perhaps a troop of drarves behind me) horse riding accross vast green plains bordered by rolling mountains with snowy peaks. I dream of kyaking down freezing crystal clear rivers with war horns sounding behind me. Right now you could probably think of dozens of places fitting this description. Ahh but only one… Read more »

Sorry Joyce but this is very normal for brands to specify that comps are geo-specific (as is the case in magazines, etc.) hope this makes sense! some comps are worldwide, keep an eye out for more as we frequently run giveaways 🙂

Sorry Hannah! Sadly brands need to do this as they are geo-specific but WOW often has worldwide comps and posts for the UK and USA as well 🙂 xx

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3 years ago

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Elizabeth

Hi, It is quite hard for me to pick just one dream destination as my dream destination is the whole world. If I had to pick just one place though (which is very hard) it would have to be South America – and I know that this is not just one country, but my reason behind choosing South America is that there is such a rich sense of history and culture that would mean a world to me if I could experience that. I am also an aspiring travel writer who is planning on studying journalism and English while at… Read more »

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3 years ago

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Roxanne

Norway. There are so many reasons I want to travel to Norway. It’s hard to express in words how much I want to travel there. There is a law in Norway called “allemannsrett” which literally translates to “all men’s rights.” Basically there is a law that allow you the freedom to roam all uncultivated land. There is a laws that tell you to go out and wander. Yes Please! I want to experience the majestic fjords, the mountains, waterfalls, glaciers, lakes, cute little red fisherman cabins, skiing, the midnight sun, the Northern Lights, reindeer. It is all so magical. I… Read more »

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3 years ago

Guest

Roxanne

My dream destination would be Norway! I am absolutely obsessed with the fjords and how majestic they look. I cannot wait to go back to Europe and explore new places like Norway! There is something so enthral about them, these huge gorges a and mountains and waterfalls. They are magical.

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3 years ago

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Nicole

Hi Brooke, After a bit of a rocky road lately, my husband and I have decided to challenge ourselves and build our relationship stronger than ever by walking the Camino de Frances together next year. We are saving, planning and getting pretty excited. I am so nervous but exhilirated about the thought of the scenery, the people and the challenges we will meet on the way. Life is about relationships and while we travel we are going to grow ours better than ever, probably testing it along the way. We are willing to budget and do whatever it takes to… Read more »

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3 years ago

Guest

Sara Gemignani

My dream destination is Japan. My fiancé and I chose it for our honeymoon, which will be next June. It’s a pretty expensive trip (we would like to stay 3 weeks), so we need to sacrifice a lot in order to afford it (plus, we need to save to pay the wedding day expenses as well!). So, in order to make it true, we are giving up on a standard wedding registry and asking our guests to donate some money for the trip instead. It may not be the most elegant thing to ask them, but we’ve been dreaming about… Read more »

I want to go to Ireland. I want to meet sweet woolly sheep that will remind me of my two English Babydoll ewes (one of which was killed by wild dogs, two years ago), Ivory and Katrina. I want to roll in the grass that is greener than any of the yards here in Missouri. I think travelers live in a constant state of “the grass is greener on the other side.” But, what’s wrong with that? It’s just like wanderlust. And it’s what keeps us moving. 😀 I want to go to the town of Cong, where the movie… Read more »

I am working and saving in order to start my own travel blog while attending Grad School at AUR! I really appreciate your blog it has helped me in so many ways and I hope that I will be just as successful helping others with my own blog!

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3 years ago

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Molly Silva

Cieo Brook My dream destination getaway is by far Italy, though I have a heart for travel and wanderlust. Italy been in my dreams since I was a little girl. And for the longest time it was just a glimmer of a far off place, one that honestly seemed unreachable. Am happy to say that is no longer the case. Am not sure when or even how I’ll make it there. What I do know is that I will! The very thought of exploreing every part of Italy, taking in all the beauty. Getting to walk down cobblestone steets, taking… Read more »

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3 years ago

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Courtney

Hi Brooke!! My dream destination is definitely Iceland. Why? Because we travel to escape. Most of us, anyway. I know that you live and breathe your job as a travel blogger, and that’s so amazing and inspiring. However, on the other hand, there are lots of people who see work only as a means to an end. Just to pay the bills, basically. As a uni student, that’s all I work for at the moment. So I see pictures of Iceland, with it’s extraterrestrial landscapes, and so far reserved from any other continent… and it makes me so happy just… Read more »

Helpful ideas, some that I already utilize. My travel plans usually begin with deciding the destination, scouting out the best travel prices for plane tickets and car rental, scouring hotel travel sites, totaling those costs, booking early, avoiding extra baggage costs, researching an itinerary with lots of low cost or freebees, breakfasting if not included in the room, buying main meal out often an early bird, taking lo’s for midnight snacking, hitting a local supermarket for a stock of tasty snacks and drinks, and most of all budgeting and saving for daily expenses within my means while planning special souvenirs… Read more »

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3 years ago

Guest

clare burns

I’m currently planning and saving like crazy for my dream trip. I have booked a cruise from argentina to ANTARCTIC, and am planning a few weeks travelling around sth America before and after. So far I’ve worked every extra shift available and saved, booked and paid for airfares, cruise and accommodation. Now i’m still working every extra shift and saving like made for living/spending money for the month i’ll be away. I can’t wait see the icebergs, penguins and everything else there is to see at the STH POLE when I head there in 3 months time!

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3 years ago

FROM THE EDITOR:

Hello, Hola, Bonjour!
My name is Brooke Saward and I have been travelling the world solo for the past seven years. Here you can find my travel inspiration & advice to help plan your own adventures or gain the confidence to travel solo. Thanks for stopping by!